Executive summary

Elitetreum is a hybrid payment platform utilising the core blockchain

technology on a mission to bring efficient, convenient and innovative zero-
commission payment solution to enterprises and consumers worldwide. Thus, the
blockchain's well-known advantages are complemented by the features of
Elitetreum.
Zero-fee conception brings Elitetreum platform highly competitive advantage
over existing blockchains with non-zero fee model. In combination with large
transaction per second capacity and fast transactions it’s going to revolutionize
established blockchain services. There is a growing demand for independency of
issued tokens out of base coin. In Ethereum, for instance it is implemented by
workaround solutions like token teleportation, which has shortcomings. Elitetreum
platform provides absolutely another way to tackle that problem. Compliance of
Elitetreum with Ethereum addresses eases migration from one platform to another.
This way Ethereum participants will be able to start using Elitetreum blockchain
platform without additional efforts.
High transactions execution capacity and fast transaction execution makes
Elitetreum platform suitable for commercial applications. Zero-fee payments and
easy joining to Elitetreum network makes blockchain platform engaging and brings
opportunity for business to offer loyalty programs to its customers.

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Table of content
Executive summary 2
Table of content 3
1. Introduction to Elitetreum 4
1.1 Background 4
1.2 Elitetreum key features 4
2. Elitetreum specifications 9
2.1 Elitetreum Masternodes 10
2.2 MNPoS consensus 10
2.3 Instant confirmation 11
2.4 Security 11
3. Economy model 13
4. Development plan 14
5. Migration plan 14
6. Conclusion 15

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 1. Introduction to Elitetreum
Elitetreum (ELT) is a hybrid blockchain platform with zero-fee fast
transactions. Its goal is to introduce blockchain technology to enterprises and
customers, bringing them the efficient, convenient and innovative zero-fee platform
with a superior transaction speed. Fast transactions as well as high transaction
processing capacity is a priority of Elitetreum project as we find it vital for
commercial application and crucial for further development.
Zero-fee transactions also greatly ease usage of platform for newcomers and
make it competitive compared to other non-zero-fee solutions. Such approach
should make Elitetreum attractive to both businesses and individuals. High
transaction processing capacity and near real-time transactions should ensure
availability for high activities by wide community and perform enough scalability for
future challenges.

1.1 Background
Elitetreum is based on the conception of Masternode PoS (MNPoS) double-
layer network and distributed autonomous architecture originating from Ethereum
blockchain solution. That technology basis provides capability to build platform with
near real-time transactions due to the fact that Masternodes ensure near real-time
verifying and execution of transactions with no need in competition between nodes
for mining new blocks, that just burns tons of resources.
Elitetreum consensus evenly allocates generation of blocks among Masternodes
pool, and requirement for them to stake ELT ensures its ethic. At the first stage
initial Masternodes are chosen with a governance model by Elitetreum to operate
within platform. At the beginning of Elitetreum network there are only exclusive
trusted partners are welcomed to join by launching Masternodes. It ensures reliable
functioning of platform. Ordinary Nodes act as gateways that provide interactions
with Elitetreum platform by writing transactions and reading a ledger.

1.2 Elitetreum key features

Zero transaction fee

Elitetreum utilizes its own fee mechanics providing users an option to enjoy
free transactions. Each account may stack some ELT coins to get the right to use
platform resources. After stacking ELT coins account gets the available number of

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transactions per time, depending on the amount of stacked coins. Also customers
are able to make transactions without stacking coins, in that case some fee will be
charged.

Fast transaction execution

In the Elitetreum network blocks are generated by trusted layer of

Masternodes. This eliminates risks of double spending and blockchain fork. So, the
transaction is treated as executed right after Masternode verifies it and puts into
corresponding block. ELT transaction execution time is approximately 3 seconds,
which is the time of block production. Such blockchain architecture makes it
possible for third parties to treat transactions as executed right after it is accepted to
the block. So, there is no need to wait for several next block generations in order to
ensure that transactions are finalized and the risk of blockchain fork is reduced.

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 High transaction processing capacity

Elitetreum block generation scheme

Elitetreum platform provides an option to arrange its blockchain parameters so

that required number of transaction per second can be achieved due to the MNPoS
consensus combined with setting the appropriate time for block generation. We
expect Elitetreum to hold 3000 TPS at the launch moment. In order to achieve such
capacity Masternode use GPU offload of signature verification algorithms.
3000 TPS in terms of Elitetreum blockchain parameters means that each block
should consists of up to 9000 transactions, because block generation time is 3
seconds. Transaction size is approximately 0,15 Kb, so the block size is 1350 Kb.
Application of GPU for verifying signatures of transactions takes approximately
200 us. This means that single Masternode can verify about 5000 transactions per
second. Additional computational resources are spent on verifying balance and
ability to send transaction regarding stocked ELT. So in order to achieve the stated
TPS parameter, the transaction pool is organised in two stages. First stage is a place,
where transactions are put by Elitetreum network participants. Masternodes together
verify that transactions from the first stage and put right ones into the second stage.
Because Masternodes are trusted participants, Elitetreum blockchain trust their

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verifying process. Masternode that is assigned for the block generation takes
transactions from second stage to make a block. Such approach doesn’t reduce
transaction capacity with the growth of Masternodes number. Instead the more
Masternodes are present in the network, the more transactions can be shifted from
first to second stage.

Decentralization

Elitetreum network initiates with Masternodes layer, run by trusted partners

with governance model. Further development of Elitetreum platform will provide
voting mechanism for Masternodes to control the community and let others to join
ELT Masternodes network with their own servers. It will ensure the increase of
decentralization and will serve the development of the platform.
The appearance of third party Masternodes in addition to trusted partners in
the Elitetreum network will cause the risk of Masternodes’ misbehaviour. To prevent
fraud actions, Elitetreum consensus will be updated by implementation of strict
punishment mechanism to resist that danger.

Voting system scheme

In general, voting mechanics uses special methods to perform corresponding

functionality. One of the methods stores a list of Masternodes and is used when it
requires to verify whether participant is a valid Masternode. Voting Fabric - is a
special method that deploys requests for voting purposes. It can deploy voting
request to run:
● voting request for adding new Masternode
● voting request for removing Masternode
● request for leaving Masternodes pool
● voting request for custom proposal
Only valid Masternode can call Voting Fabric to deploy required request which
other Masternodes use to vote for or against. It can be a request to remove

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misbehaving Masternode from Masternode List or request with some custom
proposal.
Participant, who wishes to become a Masternode should create transaction with
200 000 ELT collateral and send it to the Voting Fabric address. Voting Fabric
verifies amount of ELT and deploys voting request to add participant to the
Masternode List. If there is not enough of ELT for Masternode collateral,
transaction is returned back by Voting Fabric and no additional action is performed.
Valid Masternodes can use this deployed request to vote for the participant. With
every vote Voting Fabric verifies whether the majority is accumulated. If the
majority has voted “for”, then Voting Fabric adds this participant to the Masternode
List. If the majority has voted “against”, then the collateral is returned to the
participant. Voting Fabric also tracks time and checks whether one month has
passed and there is not enough votes. In that case collateral also returns to the
participant.
Elitetreum platform tracks voting request and sends email notifications to
Masternodes to better inform the Masternodes about the opportunity to make a
choice.
If Masternode owner decides to stop operating, then owner can call Voting
Fabric to deploy exit request. It doesn’t require any voting and after one month
smart contract automatically removes Masternode from the List and returns its
collateral.
Custom proposal doesn’t involve any automatic actions and acts as a petition to
demonstrate for the Elitetreum team the concerns of community.
In order to prevent fraud actions by Masternodes there is special method
“Consensus Protector” that looks after misbehaving Masternodes and automatically
verifies their actions. In case misbehaving is detected by verifying algorithms,
“Consensus Protector” via Voting Fabric removes such Masternode from the List
and its collateral is sent to the Elitetreum development funds.

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 2. Elitetreum specifications
Elitetreum architecture

The Elitetreum platform is double-layer blockchain network with Masterodes

and Nodes. Maternodes commit transactions and generate a chain of blocks. While
Nodes send transactions to the pool and receive recent blockchain data.
Communication between the Masternodes is organized in a manner of
multidimensional cube edges and forms inner Masternodes network. It allows to
optimize the number of required links and the distance from one Masternode to
another. The aim of that communication structure is to speed up data distribution
among Masternodes, that leads to lowering transaction execution time. Nodes join
common Elitetreum blockchain network and receive data through usual data
distributing mechanism.

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 Elitetreum parameters:
● Masternodes' functioning arrangement: one-by-one in random order
● Reward allocation: 100% is distributed to the Masternodes
● Masternode’s Threshold: 200,000 ELT
● Min Masternodes requirements: >16G RAM, >1TB HDD, 8-core
CPU, GPU
● Block generation time: 3 seconds
● Block generation reward: 5 ELT
● Processing fee: zero/low
● Total ELT release: 2 billions

2.1 Elitetreum Masternodes

The widespread of blockchain technology started with Bitcoin and led to
evolution of blockchain architecture. A concept of masternodes, brought to life by
Dash was among other new ideas how to improve blockchain. The Masternode
operates PoS (Proof of Stake) mechanism and forms a double-layer network
together with ordinary Nodes. In Elitetreum platform, ordinary Nodes are used to
perform only registration of transactions to be executed by Masternodes layer and to
read Elitetreum ledger. So Nodes act as gateways and get the access to public
Elitetreum blockchain data.
General mission of ELT Masternode is verification of transactions. Masternode
verifies the signature of incoming transaction, account balance and availability for
sending transaction, nonce value, etc., marks valid transaction as executed, and puts
it to the generating block.
Launching and maintenance of Masternode requires financial resources, time
and electricity to provide reliable performance for the sake of whole platform
functioning and stability. Masternodes receive 100% of distributed reward in order
to compensate expenses.

2.2 MNPoS consensus

The idea of the Elitetreum consensus is that execution of transactions and
generation of new blocks can be carried out only by trusted participants -
Masternodes. Masternodes use Proof of Stake (PoS) algorithm for block generation.
In terms of Elitetreum platform we call it Masternode Proof of Stake - MNPoS.
In order to perform functioning of ELT blockchain, consensus mechanism on
random basis determines Masternode, that should produce next block. Mechanics of
random algorithm is based on signature of current producing Masternode that is

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determined by previous block signature. It ensures that Masternode can’t somehow
influence its resulting signature. At the same time, the signature itself is a good seed
for counting random number. So production of block by one Masternode defines
what Masternode should produce next block. In case Masternode is unavailable and
can’t perform generation of a block, the random mechanics can randomly appoint
next Masternode, basing on described seed of random algorithm.
MNPoS consensus makes Masternodes layer to produce blocks one by one
without mining competition. It protects blockchain from fork possibility and ensures
immutability of transactions, which were put in blocks.

2.3 Instant confirmation

Due to the MNPoS algorithm in Elitetreum platform which ensures only
trusted participants to verify transactions, transaction is treated as executed
immediately after Masternode verifies it and puts in block. There is no need to wait
for several following blocks to be generated in order to validate Elitetreum
blockchain, because MNPoS consensus doesn’t imply competition between
Masternodes. In Elitetreum there is no risk of blockchain fork. Transactions are
absolutely immutable as soon as they successfully get into the block. So it takes
approximately 3 seconds for transaction to be verified and put in a block.
Combination of block generation time and number of transactions in a block
provides the number of transactions per seconds. These parameters may be
modified in future with Elitetreum platform update if it would be required to
increase transactions bandwidth.

2.4 Security
51% attack

The requirement of the threshold of the Masternode makes it expensive to run

an attack. Especially because of Elitetreum consensus that require to gain control
over Masternodes quorum, which is even harder to achieve, than 51% of total
Masternodes quantity.

Double spending

The Elitetreum MNPoS consensus algorithm, which involves only trusted

participants to commit transactions without competing in generation of blocks,
prevents double spending problem.

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 Sybil attack

In terms of blockchain it is an attack where attacker benefits from creating

multiple nodes to provide fake services for customers. Creation of fake Masternodes
will require to hold substantial amount of ELT coins to perform attack, that will be
burned in case of scum actions. Creation of fake ordinary node doesn’t afford to do
a thing with real customers’ assets. Businesses should use trusted nodes or even their
own nodes to achieve correct blockchain data.

DDoS

In order to produce a large number of spam requests in a short period of time

one should either stack substantial amount of ELT coins to get the required
bandwidth for transactions, or pay fee for each transaction.

Finney attack

The Finney attack is similar to a double-spending attack. Attacker may include

in generating block transactions that use same coins to pay someone and to send
them to his address. In case of Elitetreum platform it means that he should be a
trusted Masternode. That causes high cost for performing that kind of attack.

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 3. Economy model

Elitetreum initially issues 2 billion of ELT coins. Part of the initial coins is
distributed among early investors. The rest is going to be earned by Masternodes for
the sake of Elitetreum ecosystem development. Block reward is approximately 52.56
million of ELT per year.
Each Elitetreum Masternode needs to lock 200,000 ELT to establish its
trustworthiness. There are more than thousands of Masternodes expected to join as
soon as this option will be available.
Users of Elitetreum platform should stack ELT in order to receive opportunity
for zero-fee transactions. Each stacked ELT coin increases available transaction
bandwidth by 1 transaction per 1 000 blocks. It is also possible to send low-fee
transactions in case user doesn’t need to create them on a regular basis. An option
for ELT holders to stack it for receiving reward is under consideration.
With further development of Elitetreum platform to 2.0 version, smart contract
functionality will be introduced. In order to perform smart contract, its owner
should stack some amount of ELT, depending on the frequency of that smart
contract usage.
The conception of coin-locking behavior by Elitetreum platform participants
causes a certain deflation in long distance. As the number of participants grows, the
freezed amount of ELT will be increased. It will lead to increase of ELT price. One
thousands of Masternodes will require to freeze approximately four annual reward
amount of ELT.

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 4. Development plan
2019 Q2. Opening ELT 1.0 by releasing software for Elitetreum Masternodes
and Nodes with documentation on their deployment and usage. It enables an
initiation of Elitetreum blockchain network with predefined whitelisted Masternodes
and provides an availability to join the network by Nodes deployment. Update of
Elitetreum wallet for the sake of ensuring ELT transactions.
2019 Q3. Expansion on a new platforms to increase demand and promote
better prices. Submissions to leading cryptocurrency trading platforms.
2019 Q4. Launching the Developer Reward Program to recruit more
blockchain experts, consultants and developers around the world. Continuous
sourcing for new trading platforms to increase demand and improve the ELT price.
2020 Q1. Development of a more advanced processing system ELT 2.0
reaching up to 3,000 transactions per second. Release Elitetreum Virtual Machine for
smart contract option in Elitetreum blockchain.
2020 Q2. Participating in top blockchain industry events, conferences and
exhibitions to increase ELT market share worldwide. Closing the Pre-ICO Internal
Pre-sale.
2020 Q3. Initiating the 2nd Phase of the project to scale Masternodes
community by implementation of voting mechanics for Masternodes to let
additional Masternodes join the Elitetreum network. Update of Elitetreum MNPoS
consensus to withstand Masternodes’ misbehaviour.
2020 Q4. Compiling information and big data in preparation to enter the
capital market. The official launch of the project’s version 2.0.
2021 Q1. Initiating the 3rd Phase of the project by releasing the ELT technical
source code to the public. Release of SDK set for Elitetreum wallets and smart
contract development to ease the development of Elitetreum based projects.

5. Migration plan
Early adopters of Elitetreum have some funds stored in the Elitetreum wallet.
With the initiation of Elitetreum network, all the actions with funds will be blocked
to freeze the state of balances. ELT coins will be transferred to their Elitetreum
blockchain addresses according to the state of their freezed balances. Elitetreum
wallet will be updated in order to provide operations within ELT blockchain with
their received ELT coins provided for their preliminary contribution.

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 Since Elitetreum is based on Ethereum, ELT addresses will be compatible with
ETH addresses, that will ease migration issues, because early adopters will remain
with the same ETH addresses in ELT blockchain network.

6. Conclusion
Blockchain domain is still in the development stage, bringing new concepts
and ideas to life. Nowadays the main concern of blockchain development is to
provide businesses and customers with suitable platform for regular financial
operations that is comfortable, secure, fast and cheap as possible.
Due to MNPoS consensus Elitetreum brings zero-fee and fast transaction
concepts that simplifies usage of the platform by businesses and customers. Fast
transactions with high capacity makes Elitetreum platform highly suitable for
commercial use. Elitetreum 2.0 concepts contribute to mass adoption of dApps
based on smart contracts due to the fact, that users do not need to pay for each
dApp usage.
Elitetreum 1.0 version starts with constructing an operating blockchain
platform with trusted Masternodes network that provides optimal performance for
business and customers purposes. ELT platform brings zero-fee fast transactions
with high TPS that holds high load due to MNPoS consensus. Further evolution to
Elitetreum 2.0 system will lead to increasing the number of Masternodes in order to
amplify decentralisation and ensure widespread of Elitetreum platform. Submission
of smart contract functionality in ELT 2.0 with zero-fee feature will make Elitetreum
quite competitive platform for creating dApps and other products by blockchain
community and enthusiasts. The aim of Elitetreum is to develop next level of
blockchain integration in life activities including but not limited to payments and
transfers services, expanding with opportunity to develop new products within
Elitetreum platform.

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